Venezuela Threatens Global Airlines About Service Reductions

Brian Ellsworth, Reuters

- Mar 15, 2014 6:00 am

Skift Take

The Venezuelan president is threatening that if airline cease service to the country that they will never be welcomed back. That’s an interesting strategy, and one that’s not likely to work or be imitated elsewhere.

— Dennis Schaal

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President Nicolas Maduro on Friday warned airlines not to limit flights in and out of Venezuela, a day after reports a Colombian airline was reducing services to Caracas amid industry complaints of billions of dollars in unpaid debts.

“Airlines have no excuse to reduce their flights to Venezuela,” Maduro said during a press conference.

“If airlines reduce (flights), I will take severe measures.”

Airlines have struggled to obtain dollars in exchange for the bolivar currency as a result of long-running delays in Venezuela’s 11-year-old currency control system.

“If an airline leaves the country, it’s not coming back while we are in government,” Maduro said, casting the airlines’ complaints as part of a wider “economic war” against his socialist government by political foes and businesses.

Maduro also said, however, that his government would pay debts to the airline industry.

Avianca Holdings, operator of Colombia’s biggest airline, on Thursday told travel agents it will cut flights between the countries’ capitals to one a day from three as of March 20.

Avianca will suspend flights between Caracas and San Jose, in Costa Rica, as part of an effort “to match supply to market needs” and reduce the number of seats available between Caracas and Lima, Peru.

The company’s chief executive said that currency controls had made it difficult to bring ticket revenue worth about $300 million out of Venezuela.

German airline Lufthansa said this month its 2013 financial results took a double-digit million euro hit from payment issues in Venezuela.

Maduro said on Friday that various airlines round the world were ready to step in and cover any unfilled routes. “They’re asking for permission to cover flights to Colombia, Panama, Central America and South America,” he said, without giving more details.

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Photo Credit: President Nicolas Maduro of Venezuela is warning airlines not to limit flights in and out of the country or he would retaliate in some way. Pictured Maduro speaks during a rally on Bolivar Avenue in downtown Caracas, Venezuela, Saturday, Feb. 15, 2014. Alejandro Cegarra / Associated Press